How The World Felt When Credit Card Became A Reality Cannot Be Described In Few Words

Category: Finance, Credit.

How the world felt when credit card became a reality cannot be described in few words.

This obviously gave a massive boost to commerce and was a major boon to consumers when handled in a prudent manner as they could buy today things that in the past they would never been able to save up for. The days of paying for purchases or other financial transactions with instant cash was put to an end, because a credit card allows one to buy things on credit and pay up at a later day. As convenient and attractive the use of credit cards might look. A careful study of the problem shows that credit card debt come out top in the list and it is the most common cause of financial woes for many people. There are lots of dangers and disadvantages in using them. This is one of the main reasons why it is difficult for many people to make headways in life.

A credit card represents your account with the credit card company. The convenience of credit cards has meant that people, many who were otherwise prudent in other aspects of their day to day lives have been saddled with debt and the misery that comes with it. Each payment transaction you do with a credit card represents borrowed amount and it is what contributes to credit card debt. What people call a credit card debt is the total amount of money you owe the company that issued your credit card. People often lose sight of this simple fact and are liable to become more temped to use their credit card when it may be more prudent to wait and purchase an item at a late date. Every month, your credit card company will issue you a statement showing you the amount you owe and which must be redeemed before a certain date.

In additition such behaviour may well have a negative impact on your credit rating, particularly if repeated. You will surely be given an option of making a partial payment, but failing to do this will make you acquire late fee and interest charges. A good way to avoid paying high interest charges is to ensure prompt payment of credit card debts, as much as, and avoid possible, doing so with partial payments. No doubt the vicious circle of credit card debt is an unpleasant one, but you can fend this off by ensuring you control your spending. Making the minimum payment can become a habit but can be very expensive in the long term, especially with large balances. Try to think of each credit card payment as a personal loan that will have to be paid back

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